BILL NUMBER: SB 649	CHAPTERED  10/10/99

	CHAPTER   1019
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN SENATE   MAY 28, 1999

INTRODUCED BY   Senator Costa

                        FEBRUARY 24, 1999

   An act to amend Sections 16142 and 51296 of, and to add Section
16142.1 to, the Government Code, relating to open-space subventions,
and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 649, Costa.  Open-space subventions:  farmland security zone
contracts.
   (1) Existing law requires the Controller to pay subventions to
local governments at specified rates per acre to replace property tax
revenues lost by reason of the required reductions in assessments of
property restricted to use as open space.  Those amounts are
continuously appropriated from the General Fund to the Controller for
that purpose.
   This bill would include within those provisions, subject to a
10-year limit on those payments and a $100,000 annual cap applicable
until 2005, certain land as to which a notice of nonrenewal of a use
restriction has been served if the land was previously assessed at a
specified rate applicable to land subject to a farmland security zone
contract.  The bill would increase the amount to be paid with
respect to land subject to a farmland security zone contract or for
which such a notice of nonrenewal was served in a county that has
adopted farmland security zones.
   (2) Existing law provides procedures for cancellation or
nullification of contracts for the establishment of agricultural
preserves and for the rescission of those contracts in order to place
the land under a farmland security zone contract.
   This bill would impose additional specified requirements for the
cancellation of farmland security  zone contracts, thereby creating a
state-mandated local program by imposing new duties on local
agencies.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 16142 of the Government Code is amended to
read:
   16142.  (a) The Secretary of the Resources Agency shall direct the
Controller to pay annually out of the funds appropriated by Section
16140, to each eligible county, city, or city and county, the
following amounts for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423, 423.3, 423.4,
or 423.5, or 426 if it was previously assessed under Section 423.4,
of the Revenue and Taxation Code:
   (1) Five dollars ($5) for prime agricultural land, as defined in
Section 51201.
   (2) One dollar ($1) for all land, other than prime agricultural
land, which is devoted to open-space uses of statewide significance,
as defined in Section 16143.
   (b) The amount per acre in paragraph (1) of subdivision (a) may be
increased by the Secretary of the Resources Agency to a figure which
would offset any savings due to a more restrictive determination by
the secretary as to what land is devoted to open-space use of
statewide significance.
   (c) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code.
  SEC. 2.  Section 16142.1 is added to the Government Code, to read:

   16142.1.  (a) In lieu of the payments made pursuant to Section
16142, in a county that has adopted farmland security zones pursuant
to Section 51296, the Secretary of the Resources Agency shall direct
the Controller to pay annually out of the funds appropriated by
Section 16140, to each eligible county, city, or city and county, the
following amount for each acre of land within its regulatory
jurisdiction that is assessed pursuant to Section 423.4 or 426 of the
Revenue and Taxation Code, if it was previously assessed under
Section 423.4 of that code:
   Eight dollars ($8) for land that is within, or within three miles
of the boundaries of the sphere of influence of, each incorporated
city.
   (b) The amount per acre in subdivision (a) shall only be paid for
10 years from the date that the land was first assessed pursuant to
Section 426 of the Revenue and Taxation Code, if it was previously
assessed under Section 423.4 of that code.  The appropriation
authorized by this subdivision shall not exceed one hundred thousand
dollars ($100,000) per year until 2005.
  SEC. 3.  Section 51296 of the Government Code is amended to read:
   51296.  (a) The Legislature finds and declares that it is
desirable to expand options available to landowners for the
preservation of agricultural land.  It is therefore the intent of the
Legislature in enacting this article to encourage the creation of
longer term voluntary enforceable restrictions within agricultural
preserves.
   (b) A landowner or group of landowners may petition the board to
rescind a contract or contracts entered into pursuant to this chapter
in order to simultaneously place the land subject to that contract
or those contracts under a new contract designating the property as a
farmland security zone.  A landowner or group of landowners may also
petition the board to create a farmland security zone for the
purpose of entering into farmland security zone contracts pursuant to
this section.
   (1) Before approving the rescission of a contract or contracts
entered into pursuant to this chapter in order to simultaneously
place the land under a new farmland security zone contract, the board
shall create a farmland security zone, pursuant to the requirements
of Section 51230, within an existing agricultural preserve.
   (2) No land shall be included in a farmland security zone unless
expressly requested by the landowner.  Any land located within a city'
s sphere of influence shall not be included within a farmland
security zone, unless the creation of the farmland security zone
within the sphere of influence has been expressly approved by
resolution by the city with jurisdiction within the sphere of
influence.
   (3) If more than one landowner requests the creation of a farmland
security zone and the parcels are contiguous, the county shall place
those parcels in the same farmland security zone.
   (4) A contract entered into pursuant to this section shall be for
an initial term of no less than 20 years.  Each contract shall
provide that on the anniversary date of the contract or on another
annual date as specified by the contract, a year shall be added
automatically to the initial term unless a notice of nonrenewal is
given pursuant to Section 51245.
   (5) Upon termination of a farmland security zone contract, the
farmland security zone designation for that parcel shall
simultaneously be terminated.
   (c) Both of the following shall apply to land within a designated
farmland security zone:
   (1) The land shall be eligible for property tax valuation pursuant
to Section 423.4 of the Revenue and Taxation Code.
   (2) Notwithstanding any other provision of law, any special tax
approved by the voters for urban-related services on or after January
1, 1999, on the land or any living improvement shall be levied at a
reduced rate unless the tax directly benefits the land or the living
improvements.
   (d) Notwithstanding any provision of the Cortese-Knox Local
Government Reorganization Act of 1985 (Division 3 (commencing with
Section 56000)), a local agency formation commission shall not
approve a change of organization or reorganization that would result
in the annexation of land within a designated farmland security zone
to a city.  However, this subdivision shall not apply under any of
the following circumstances:
   (1) If the farmland security zone is located within a designated,
delineated area that has been approved by the voters as a limit for
existing and future urban facilities, utilities, and services.
   (2) If annexation of a parcel or a portion of a parcel is
necessary for the location of a public improvement, as defined in
Section 51290.5, except as provided in subdivision (f) or (g) of this
section.
   (3) If the landowner consents to the annexation.
   (e) Notwithstanding any provision of the Cortese-Knox Local
Government Reorganization Act of 1985 (Division 3 (commencing with
Section 56000)), a local agency formation commission shall not
approve a change of organization or reorganization that would result
in the annexation of land within a designated farmland security zone
to a special district that provides sewers, nonagricultural water, or
streets and roads, unless the facilities or services provided by the
special district benefit land uses that are allowed under the
contract and the landowner consents to the change of organization or
reorganization.
   (f) Notwithstanding Article 5 (commencing with Section 53090) of
Chapter 1 of Division 2 of Title 5, a school district shall not
render inapplicable a county zoning ordinance to the use of land by
the school district if the land is within a designated farmland
security zone.
   (g) Notwithstanding any provision of law, a school district shall
not acquire any land that is within a designated farmland security
zone.
   (h) The board shall not approve any use of land within a
designated farmland security zone based on the compatible use
provisions contained in subdivision (c) of Section 51238.1.
   (i) This section shall only apply to land that is designated on
the Important Farmland Series maps, prepared pursuant to Section
65570 as predominantly one or more of the following:
   (1) Prime farmland.
   (2) Farmland of statewide significance.
   (3) Unique farmland.
   (4) Farmland of local importance.
   If the proposed farmland security zone is in an area that is not
designated on the Important Farmland Series maps, the land shall
qualify if it is predominantly prime agricultural land, as defined in
subdivision (c) of Section 51201.
   (j) Nonrenewal of a farmland security zone contract shall be
pursuant to Article 3 (commencing with Section 51240), except as
otherwise provided in this article.
   (k) A petition for cancellation of a farmland security zone
contract created under this article may be filed only by the
landowner with the city or county within which the contracted land is
located.  The city or county may grant a petition only in accordance
with the procedures provided for in Article 5 (commencing with
Section 51280) and only if all the following requirements are met:
   (1) The city or county shall make both of the findings specified
in paragraphs (1) and (2) of subdivision (a) of Section 51282, based
on substantial evidence in the record.  Subdivisions (b) to (e),
inclusive, of Section 51282 shall apply to the findings made by the
city or county.
   (2) In its resolution tentatively approving cancellation of the
contract, the city or county shall find all of the following:
   (A) That no beneficial public purpose would be served by the
continuation of the contract.
   (B) That the uneconomic nature of the agricultural use is
primarily attributable to circumstances beyond the control of the
landowner and the local government.
   (C) That the landowner has paid a cancellation fee equal to 25
percent of the cancellation valuation calculated in accordance with
subdivision (b) of Section 51283.
   (3) The Director of Conservation approves the cancellation.  The
director may approve the cancellation after reviewing the record of
the tentative cancellation provided by the city or county, only if he
or she finds both of the following:
   (A) That there is substantial evidence in the record supporting
the decision.
   (B) That no beneficial public purpose would be served by the
continuation of the contract.
   (4) A finding that no authorized use may be made of a remnant
contract parcel of five acres or less left by public acquisition
pursuant to Section 51295, may be substituted for the finding in
paragraph (1).
   (l) All of the provisions of Article 6 (commencing with Section
51290) shall apply to farmland security zones created pursuant to
this article except as specifically provided in this article.
   (m) No state agency, as defined in Section 65934, or local agency,
as defined in Section 65930, shall require any land to be placed
under a farmland security zone contract as a condition of the
issuance of any entitlement to use or the approval of a legislative
or adjudicative act involving, but not limited to, the planning, use,
or development of real property, or a change of organization or
reorganization, as defined in Section 56021 or 56073.  No contract
shall be executed as a condition of an entitlement to use issued by
an agency of the United States government.
   (n) Subdivisions (d) and (e) shall not apply during the three-year
period preceding the termination of a farmland security zone
contract.
   (o) Nothing in this section shall be construed to limit the
authority of a board to rescind a portion or portions of a Williamson
Act contract or contracts for the purpose of immediately enrolling
the land in a farmland security zone contract so long as the
remaining land is retained in a Williamson Act contract and the board
determines that its action would improve the conservation of
agricultural land within the county where the rescission occurs.  The
creation of multiple contracts under this subdivision does not
constitute a subdivision of the land.
  SEC. 4.  Subdivision (k) of Section 51296 of the Government Code,
as amended by Section 3 of this act, shall apply to any farmland
security zone contract entered into prior to the effective date of
this act, except as follows:
   (a) If the contract contains a cancellation provision pursuant to
Section 51282 of the Government Code and either party objects to
conforming it to subdivision (k) of Section 51296 of the Government
Code, as amended by this act, the contract shall revert to the form
in which it previously existed under the Williamson Act (Chapter 7
(commencing with Section 51200) of Division 1 of Title 5 of the
Government Code) prior to its conversion to a contract under Section
51296.
   (b) If the contract currently contains no cancellation clause or a
prohibition on cancellation, the contract shall remain in effect
unmodified.  However, with the consent of both parties, the contract
may be modified to conform to subdivision (k) of Section 51296.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
